Companies

L&T eyes banking space, may apply for a licence

Thomas K Thomas Suresh P Iyengar Mumbai | Updated on January 26, 2021

SN Subrahmanyan, CEO and Managing Director, L&T

Larsen & Toubro is weighing the option of applying for a full-fledged banking licence with the Reserve Bank of India proposing to allow corporates and large industrial groups to float banks.

SN Subrahmanyan, CEO and Managing Director, L&T, told Business Line that an internal committee has been set up to study the opportunity and submit a report. “We have had ambitions to take a banking licence for a long time. But we could not get it previously. There are good reasons to be in the NBFC space and there are pros and cons to becoming a full-fledged bank. We are studying it,” Subrahmanyan said.

L&T is currently present in the financial services business through its NBFC arm L&T Finance. It had applied for a banking licence in 2014 but was not selected by the RBI.

Since then L&T Finance, which started as pure-play infra finance player, has moved into retail. Over the last two years, retail has become 50 per cent of L&T Finance’s portfolio.

 

Follow us on Telegram, Facebook, Twitter, Instagram, YouTube and Linkedin. You can also download our Android App or IOS App.

Published on January 26, 2021
This article is closed for comments.
Please Email the Editor